The U.S Dollar continues to weaken on the event of record rise in the Dow Jones Industrials (DJIA). Breach of 74.00 ranges in Dollar Index (DXM11) resulted in further weakening of the Greenback; only consistent daily close above 75.40 ranges would post short-term bottom.
The Common Currency is reaching major resistance zone of 1.4720-1.4820 ranges from where it sold off during mid December, 2009.
The Dow Jones Industrials (DJIA) is trading consistently above the major support of 12400 ranges, DJIA Vs DX correlation suggests weakening of the U.S Dollar. Caution is spelt out in case of DJIA as it is entering major resistance zone of 12500-12700. Important support for DJIA is seen at 12400 ranges and key resistance for DX is seen at 75.40 ranges. NYMEX Crude June basis is facing stiff resistance at $113.00 upper ranges; $114.00 being major barrier from where correction was witnessed on April 11, 2011.
FX Pair Support 2 Support 1 Resistance 1 Resistance 2
EURUSD 1.4615 1.4570 1.4715 1.4820
USDJPY 80.70 81.10 82.60 83.40
GBPUSD 1.6390 1.6430 1.6580 1.6672
USDCHF – 0.8650 0.8800 0.8845
EURJPY 117.30 118.40 120.00 121.20
AUDUSD 1.0730 1.0760 1.0865 –
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